Carbon-smart organizations integrate emissions-related data and information into operational and financial decision-making. A carbon intelligent business develops and deploys a series of capabilities that allow it to identify, prioritize, execute and scale decarbonization interventions across its supply chains, operations or products and services, in an effective and efficient manner.
Those companies that can make decisions on carbon performance in the same way they do for financial and operational matters will be in a much stronger position to demonstrate how and why their actions generate value for shareholders and stakeholders.
For example, S&P Global Platts and Xpansiv launched a new benchmark for methane performance in natural gas production in the United States. Methane Performance Certificates (MPCs) allow a U.S. producer to differentiate and accurately price cleanly produced, or responsibly sourced natural gas. The production and transportation of natural gas can emit large volumes of methane — a substantially more potent greenhouse gas than carbon dioxide. MPCs provide a tradable instrument for achieving a lower intensity, unlocking the market value of reducing the impact of gas production. We are already seeing this concept extend to other energy and materials commodities as well, from steel to hydrogen.